Iran to Establish New Restricted Zone Outside Strait of Hormuz, Oil Prices Rise at Market Open

After the US attack on Iranian oil tankers, Tehran announced the establishment of a new restricted zone outside the Strait of Hormuz, sparking concerns about a long-term disruption to energy transport through this waterway. Oil prices rose in early trading. Brent crude opened up as much as 0.8%, breaking above $95 per barrel, while WTI crude surpassed $90 per barrel. The US stated that it launched attacks on three Iranian oil tankers over the weekend, destroying one of them in retaliation for Iran's use of ballistic missiles to attack US Navy vessels. According to Iran News TV, a top Iranian security official said that in the coming days, a new restricted zone will be established outside the Strait of Hormuz, starting from the US Navy blockade and extending into parts of the Persian Gulf. Last week, after a relatively calm period in US-Iran relations, tensions flared again, causing crude prices to surge. Since the beginning of this year, Brent crude prices have risen nearly 60%, and prices of refined products such as diesel have seen even more significant increases due to conflicts in the Middle East and the Russia-Iran war. US Energy Secretary Wright stated that the US Navy will not relax its deployment in the Strait of Hormuz, including efforts to block Iranian oil exports and ensure the safe passage of other merchant vessels.